This Agreement shall no longer apply. It was only valid until 2004. It had essentially set quotas for the volume of textile and clothing exports from developing countries to industrialized countries. Developed countries, including the US and the EU, had done so to protect their own domestic producers. The dissolution of this agreement has opened up a great opportunity for developing countries such as India. To seize this opportunity, India must be ready to meet the needs of foreign customers in terms of standardization, modernization, customization and profitability. On the other hand, India and China are participating in and conducting negotiations on the Regional Comprehensive Economic Partnership Agreement (RCEP). This agreement should reflect the interests of developing countries in its final draft. The WTO system contributes to development.
On the other hand, developing countries need the flexibility in time they need to implement the agreements of the system. And the agreements themselves inherit the old GATT provisions, which allow for special aid and trade concessions for developing countries. The agreement provides for a general reduction in customs duties on industrial products and the expiry of quantitative restrictions over a certain period. The important implication is that companies that have a competitive advantage would be able to survive in the long run. Many of the other WTO agreements aim to support fair competition: in agriculture, intellectual property, services, for example. The Agreement on Government Procurement (a “plurilateral” agreement since it is signed by only a few WTO Members) extends competition rules to purchases by thousands of state entities in many countries. And so on. Some experts believe that as part of the Uruguay Round commitments, developed countries have already put in place a liberal Mode 1 trade regime (covering outsourcing of business processing or BPOs) for some of the services sectors of interest to India. Further research is needed to assess the extent of autonomous liberalization by developed countries that can be included in the negotiations and the resulting gains that can benefit India. Moreover, even without further liberalization, India`s services exports would continue to grow given its cost advantage and demographics.
India could also explore the possibility of concluding mutual recognition agreements with major importers of services so that differences in domestic regulatory systems do not constitute obstacles to its exports. The World Trade Organization (WTO) is the only global international organization that deals with the rules of trade between nations. The focus is on the WTO agreements, which have been negotiated and signed by most of the world`s trading nations and ratified by their parliaments. UPSC aspirants preparing for the IAS exam should be aware of this topic. As we see that the subsidies were linked to the 1986-1988 level, there were inequalities at the beginning of the agreement. At that time, subsidies that fell under the “orange box” were historically high in Western countries. In developing countries, including India, these subsidies were very limited. It is only now, under the pressure of inflation in the prices of the means of agricultural production and the large differences between market prices and the minimum support price, that subsidies have reached this level. In fact, developed countries are allowed to maintain a much higher amount of trade-distorting subsidies. The most important of these was a fixed timetable for the dismantling of the Multifibre Agreement (MFA) on trade in textiles as enshrined in the Agreement on Textiles and Clothing (ATC) and the Agreement on Agriculture (ESA).
Look at each one in order. This round (8th round of multilateral negotiations) began in 1986 and lasted until 1994. The Uruguay Round negotiations focused on more issues and affected more countries than any previous round. It provides, inter alia, for tariffs on industrial products to be reduced by more than a third on average, for trade in agricultural products to be progressively liberalized and for a new body, the World Trade Organization, to be established to facilitate the implementation of multilateral trade agreements and serve as a forum for future negotiations. India`s experience with the ITA has been very discouraging, which has almost wiped out India`s IT industry. The real winner of this agreement was China, which increased its global market share from 2% to 14% between 2000 and 2011. India needs to develop its diplomatic capabilities. The recent meeting in Nairobi had shown that, although the industrialized countries had spoken in unison, there was no such unity in the developing countries. Brazil, a prominent member of the WTO, has already separated from the G-20/33 group and has positioned itself close to the position of the industrialized countries; thanks to its globally competitive agricultural sector. India made serious efforts to reach a common agenda for the WTO at last year`s India-Africa Summit and was largely successful.
However, greater joint efforts must be made to create the common platform of developing countries on all continents. The United States has been doing this for several years, and that is part of why it remains the most assertive and subtle power in any negotiation. While the GATT was primarily concerned with trade in goods, the WTO and its agreements could not only be covered, but also cover trade in services and other intellectual property rights such as commercial creations, designs and inventions. The coverage of higher education in the GATS will promote the treatment of education as an exchangeable good. It is possible that any agreement will limit the Power of the Indian Government to provide subsidies and support to the sector. In addition, it is likely to influence India`s booking policy. In addition, foreign universities will consume the scarce educational resources available in India, leaving domestic and public institutions less competitive with a lack of good teachers. There are also concerns that it will accelerate India`s brain drain, as foreign universities are likely to design courses as part of their parent institution.
This agreement deals with the granting of market access, the reduction of export subsidies and state subsidies for agricultural products. Equal treatment of other nations – Under the WTO Agreements, countries cannot normally discriminate between their trading partners. If they give a country a special favor (for example. B a lower rate of duty on one of their products), they must do the same for all other WTO Members. On 30 August 2003, WTO members reached an agreement on the issue of travel and medicines. The governments of the Member States agreed in the General Council on a decision providing for a provisional derogation under the TRIPS Agreement allowing a Member State to export pharmaceutical products manufactured under compulsory licence to the least developed countries and certain other Members. It also allows members not to allow patents to be permanently updated. Decisions of WTO bodies on the Information Technology Agreement are contained in the Guide to the Analytical Index to WTO Law and Practice. Up to 53 WTO members agreed in Nairobi on a seven-year deadline to abolish all tariffs on 201 information technology products, which account for $1.3 trillion in annual trade. Such a pact is touted to drive down the prices of items ranging from video cameras to semiconductors. However, India had opposed such a deal, fearing that the deal would only benefit countries (including the US, China, Japan and Korea) that have a strong production base for these products, not India. This information technology agreement is called ITA-II.
The original ITA was signed in 1996. The new ITA aims to expand the lists of covered items and completely abolish tariffs within 7 years. Since 1996, many new articles have crept into the electronics industry, which remains outside the scope of the ITA. The current gloomy state of the Indian electronics industry is often attributed to the 1996 ITA. This has forced India to keep some electronic items duty-free, giving us a notorious “reverse customs structure”. Here, domestic products are subject to a higher excise duty than customs duties. This puts Indian manufacturers far behind foreign suppliers. The many agreements signed within the framework of the WTO have many implications for the Indian economy. They are discussed below: Intellectual property rights aim to protect and legally recognize the author of the intangible illegal use of his creation. These include patents, copyrights, geographical indications, trademarks, industrial cycles, designs and trade secrets. Since the law governing these aspects varies considerably from one country to another, the agreement establishes a fundamental homogeneity of the law, so that there is no offence.
This required some changes in the national laws of countries, including India. As a result, India has amended the Copyright Act, the Patents Act and the Trade and Commerce Act. The pharmaceutical and biotechnology industries are expected to be the most affected. Further influence on India is expected in technology transfer from abroad. d. Question of implementation: Developing countries report that they have had difficulties in implementing the agreements reached in the previous Uruguay Round due to limited capacity or a lack of technical assistance. They also claim that they have not realized some of the benefits they expected from the round, such as .B improving access for their textiles and clothing to the markets of industrialized countries. They shall endeavour to clarify the language relating to their interests in existing agreements […].